Areeda and Turner (1975) were the first to argue that a price below marginal costs should be considered a sign of predation. Recognizing that marginal cost data were typically unavailable, the authors concluded that a price below average variable cost should be presumed unlawful. This so-called...

We study optimal cartel prices in a two-sided market. We present a simple model showing that prices above the two-sided monopoly price may prevail on one side of a two-sided market as a means to enhance the sustainability of the cartel. We prove that in such a case a higher benefit from the...

Economists are particularly familiars with market standard holder?s advantages. The same goes for means and strategies to success in such attempt. However, in the context of standardization in the high definition sector (Blu-Ray Disc versus HD-DVD), traditional explanatory factors do not seem to...

Areeda and Turner (1975) were the first to argue that a price below marginal costs should be considered a sign of predation. Recognizing that marginal cost data were typically unavailable, the authors concluded that a price below average variable cost should be presumed unlawful. This socalled...

In 1977 the Japanese Antimonopoly Law introduced the report collecting system on parallel price increases, i.e., price leadership. The substantial aim of this system is to encourage self-restraint with regard to irrational parallel price increase. We investigate some features of price leadership...

This paper studies the interaction between the incentives for predation and mergers. I show that the incentive for predation in an oligopoly is limited by the subsequent competition for the prey. This bidding competition is especially fierce when the prey's assets exert strong negative...

Satellite radio competitors XM and Sirius recently announced their intention to merge their companies in a $13 billion deal. Recent financial statements show this merger is necessary. Although both stocks grew steadily through October of 2004, they hit a plateau after that and then began a...

This paper analyses the incentives of a vertical integrated Internet service provider (ISP) to block competitors from content markets. Using a simple model we find that the ISP does not block competing content providers as long as the contents are differentiated sufficiently. Exclusion only...